Glossary Kaplan

Question 1

Agent

Answer 1

one who acts on behalf of another

Question 2

Bid Bond

Answer 2

A surety bond guaranteeing that the bidder will sign a contract, if offered, in accordance with his proposal

Question 3

Arbitration

Answer 3

alternative to litigation - arbitrator hears the evidence and decides

Question 4

bonus and penalty clause

Answer 4

a provision in the contract that entitles the contractor to bonus if completes project on time and penalty for not completing on time

Question 5

change order

Answer 5

written order to the contractor, prepared by the architect, signed by the architect, owner and contractor

Question 6

completion bond

Answer 6

obtained by contractor or owner - guarantees that the project will be completed free of liens